D4T4 Solutions PLC (D4T4)

Monday 23 April, 2018

D4T4 Solutions PLC

Year End Trading Update

RNS Number : 6378L

D4T4 Solutions PLC

23 April 2018

D4t4 Solutions Plc

(the "Company", "Group" or "D4t4")

Year End Trading Update

D4t4 Solutions Plc (AIM: D4t4), specialists in data solutions, is pleased to provide the following trading update, ahead of the publication of the Group's final results for the financial year ended 31 March 2018 which are expected to be released in the week commencing 25 June 2018.

Highlights:

Ø AdjustedProfit* expected to be slightly ahead of management expectations

"Our strategy continues to deliver and is reflected in our strong profit growth. The business enters the new financial year in robust shape after achieving record bookings in the second half year and we are encouraged by the opportunities and outlook for the business in the coming year. Consequently, as a Board we are confident in delivering our expectations for the financial year ending March 2019."

2017-18 overview

The Group has over the last three years focused on increasing its emphasis on data collection, data management and analytics.

During the last financial year the Company has made solid progress with its strategic goals whilst growing overall revenue and increasing profits through the delivery of increased value for our clients from their data.

Our focus on being the most comprehensive data collection platform in the market has continued with the launch of our GDPR compliant customer data platform (CDP). This, coupled with the increasing demand for our hybrid analytics cloud solutions, leads the Board to believe that the coming year will be a strong one for the group.

To date there has been no material impact from the UK's Referendum decision to leave the EU, albeit this is subject to any items that might change in the coming 12 months as the Government negotiate the UK's exit from the European Union. As an international business working with both UK and multinational companies we believe in our strategy and the Board remains confident that the business and its people have the flexibility and foresight to meet any challenges as and when they arise.

Trading performance

Reported Group revenue for 2017-18 is expected to be c.£20m with group profits slightly exceeding management expectations

Projects revenue is up year on year reflecting the strength of the demand in the market for our hybrid analytics cloud solutions.

We are delighted to report that we continue to benefit from the strong demand for our Celebrussoftware products where we have seen a change in the mix between our traditional perpetual license style business and recurring revenue models with an increase in the demand for the recurring revenue version of our products, this has resulted in top line sales being lower than the previous year whilst at the same time increasing the number of deployed customers during the period which will increase the deferred revenue for the future. Our opportunity pipeline looks strong and we expect to see a return to top line license sales growth in 2018-19.

Our Recurring income stream reported solid growth for the year reflecting the increase in the projects business and continued new software sales and we are happy to report that this segment returned a trading performance in line with budget.

Financial position

Net cash at the end of March stood at £3.9m (FY2017: £5.1m), largely reflecting the fact that revenues were weighted towards the end of the 2017-18 financial year. The Company continues to have a solid balance sheet and to generate cash.

Dividend policy

We remain committed to a progressive dividend policy and as a Board we expect to declare an increase in the dividend payable for the 2017-18 financial year which is in line with our previously stated intentions.

Summary outlook

There will always be macroeconomic factors that no business can fully mitigate including currency volatility and more recently the possible wider potential implications of Brexit.

We remain confident in the Group's strategy; our underlying business is delivering against our key KPIs and is performing well and D4t4 is well-positioned in its key markets. The current revenue visibility, order book and pipeline of opportunities bodes well for the future.

The business enters the new financial year in robust shape and we are encouraged by the opportunities and outlook for the Group in the coming year. As a result, we remain confident that we can achieve the current management expectations for the financial year 2018-19.

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.

We are energetically focused on solutions that enable clients who operate from within the financial services, retail, electronics and telecommunications sectors to get the most from their data. From collection, through to management and analysis, we provide comprehensive products and services that drive value from our clients' information assets. We are accredited in ISO27001: Information Security Management and PCI Data Security Standard.

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